MDS pumps US$40 million into joint venture

Toronto’s MDS Inc is spending US$40 million to expand its existing joint venture with Applied Biosystems Group, Foster City CA. It is buying a 50% interest in the intellectual property assets of Applied Biosystems’ current mass spectrometry systems and a 100% interest in related research and manufacturing assets. The joint venture was established in 1986 and is located in Toronto. The latest deal will see MDS Sciex assume primary responsibility for R&D and manufacturing for Applied Biosystems’ MALDI Time-of-Flight (TOF) mass spectrometry systems as well as R&D and manufacturing responsibility for products currently within the joint venture. It’s anticipated that the latest agreement will add up to $30 million annually to MDS’s revenues while benefits from the new agreement start contributing revenues by 2005. For its part, Applied Biosystems will market, sell, service and provide research support to the joint venture products....